By Devika Patel
Knoxville, Tenn., Sept. 30 – Morgan Stanley Finance LLC priced $1.32 million of contingent income securities due Sept. 30, 2031 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Morgan Stanley.
The notes will pay a fixed monthly coupon at an annual rate of 7% for the first five years. After that, the coupon will be a contingent monthly payment at an annual rate of 7% if each index closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that month.
The payout at maturity will be par plus the final coupon unless either index finishes below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the worst-performing index.
Morgan Stanley & Co. LLC is the agent.
Issuer: | Morgan Stanley Finance LLC
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Guarantor: | Morgan Stanley
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Issue: | Contingent income securities
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Underlying indexes: | Russell 2000 and S&P 500
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Amount: | $1,324,000
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Maturity: | Sept. 30, 2031
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Coupon: | 7% for first five years, then 7% for each month that both indexes close at or above coupon barrier level on the observation date for that month
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Price: | Par
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Payout at maturity: | Par plus coupon unless either index finishes below its barrier level, in which case investors will lose 1% for each 1% decline of the worst-performing index
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Initial levels: | 1,246.381 for Russell 2000 and 2,159.93 for S&P 500
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Barrier levels: | 747.829 for Russell 2000 and 1,295.958 for S&P 500; 60% of initial levels
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Pricing date: | Sept. 27
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Settlement date: | Sept. 30
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Agent: | Morgan Stanley & Co. LLC
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Fees: | 3.5%
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Cusip: | 61766BCB5
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